The A$230 million ($171 million), 140 MW plant will be located at Bogong, in the Kiewa Valley, in Victoria's Alpine region.
The company has also announced the commissioning of the nearby 12.2 MW Banimboola hydroelectric power station.
The station will be built at the base of Lake Guy and will allow the existing Kiewa scheme to operate more efficiently as a peaking plant by enabling the nearby 150 MW McKay Creek power station to operate at its maximum capacity of 160 MW and enabling instantaneous water delivery to the 29 MW Clover power station, also part of the Kiewa scheme.
The plant is scheduled to be fully commissioned by October 2009 with the two major turnkey EPC contracts awarded to McConnell Dowell Constructors and Toshiba.
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